🛑 Urgent | The Federal Reserve Settles the Debate
The Federal Reserve Board has just issued its first statement for the year 2026, and the decision is as follows:
1️⃣ Keeping Interest Rates Steady:
It was decided to maintain the interest rate at a range of 3.50% - 3.75%. This decision temporarily ends the previous rate cuts and aims to ensure inflation stability.
2️⃣ Strong Economy:
The statement described the growth of the U.S. economy as "strong and robust," noting that the labor market remains resilient despite the tightening monetary policy.
3️⃣ Split in the Committee:
For the first time in a while, the decision was not unanimous; two members called for an immediate rate cut, reflecting an internal struggle over the "timing" of the next cut.
4️⃣ Jerome Powell's Message:
"Completely independent of politics, and our only goal is price stability." (A clear indication of the bank's commitment to its decision away from pressures from the White House).
📉 Impact of the Shock on Markets:
Gold: Maintained its historical gains above $5,250.
Stocks: The S&P 500 index is holding its peak above 7,000 points.
Dollar: Limited fluctuations await clarity on the March meeting.